1 intro marketing

MARKETING MANAGEMENT :SCOPE AND NATURE

MARKETING : CORE CONCEPTS• Marketing is a social and managerial process by which

individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others

(Philip Kotler )Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders(Kotler Keller)• Demand ?• Services and Ideas ?

MARKETING : CORE CONCEPTS

• Needs : State of deprivation of some basic satisfaction. Not created by society / marketers. Exist in very texture of human biology and condition

• Wants : Desires for specific satisfiers of need. Continuously shaped/reshaped by social forces and institutions..

• Demands : Want for specific products products that are backed by the ability and willingness to buy them. Wants become demands when supported by purchasing power


• Needs are few / wants are many• Needs preexist marketers• Marketers along with social influences

influence wants• Marketers influence demand by making the

products appropriate, attractive, affordable, and easily available to target customers


• Product : Anything that can satisfy a need or want• Product : also called offering or solution• Product can have three components : physical

goods , services and ideas• Product owning vs. obtaining the service they

render• Marketing myopia• Physical object : means of packaging a service

What is Marketed?Goods

Services

Events & Experiences

Persons

Places & Properties

Organizations

Information

Ideas


• Product choice set• Need set• Value :consumer’s estimate of the products’

overall capacity to satisfy needs• Value is the satisfaction of customers’

requirements at the lowest possible cost of acquisition, ownership and use

• Opportunity Cost

Structure of Flows in a Modern Exchange Economy

Demand States

Nonexistent Latent

Declining Irregular

Full UnwholesomeOverfull

Negative


• How people can obtain products :1. Self – production 2. Coercion3. Begging4. Exchange : act of obtaining a desired product

from someone by offering something in return


• Conditions that must be satisfied for exchange potential to exist :

1. At least two parties2. Each party has something that might be of value to the

other party3. Each party is capable of communication and delivery4. Each party is free to accept or reject the exchange offer5. Each party believes it is appropriate or desirable to

deal with the other party


• Exchange is a process rather than an event• Transaction is a trade of values between two or more

parties• Monetary transaction vs. barter transaction• Transfer : One party gives something of value to the

other party but does not receive anything in return• Marketers seek to elicit a behavioral response from the

other party• Negotiation : Process of trying to reach agreeable terms


• Market : Consists of all the potential customers sharing a particular need or want who may be willing and able to engage in exchange to satisfy that need or want

• Traditionally : Market is a place here buyers and sellers gather to exchange their goods

• Economists : Collection of buyers and sellers who transact over particular product (class)

• Marketers : Sellers = industry , buyers = market


• Market types : Need / Product / Demographic / Geographic /Voter / Labor etc-.

Industry ( Collection of

sellers )

Market ( Collection of

buyers)

Goods / Services

Money

Communication

information

MARKETING : CORE CONCEPTS• Marketing (Management) : Process of planning and

executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

• Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value

• Marketing Management has the task of influencing the level, timing and composition of demand in a way that will help the organization achieve its objective


• Production Concept : The consumers will favor those products that are widely available and low in cost. Managers of production oriented organizations concentrate on achieving high production efficiency and wide distribution.

• This holds true in two situations :1. Demand for a product exceeds supply2. Product’s cost is high and has to be decreased

to expand the market


• Product Concept : Customers will favor those products that offer the most quality, performance, or innovative feature. Concentration is on making superior products and improving them all the time.

• Companies are more self obsessed• Customer input is vital• Looking into a mirror vs. looking outside the

window

MARKETING : CORE CONCEPTS• Selling Concept : Holds that the consumers, if left alone, will

not buy enough of the organisation’s products. The organisation must therefore undertake an aggressive selling and promotion effort

• Practice for goods that people do not normally think of buying / overcapacity

• Aim is to sell what they make rather than make what the markets want

• Aim of marketing is to make selling superfluous• Aim of marketing is to know the customer so well that the

product or service fits him and sells itself

MARKETING : CORE CONCEPTS• Marketing Concept :The key to achieve organisational goals

consists of being more effective than competitors in integrating marketing activities towards determining and satisfying the needs and wants of target markets

• 4 pillars of marketing concept : Target Market / Customer Needs / Integrated marketing / profitability

• Selling focuses on the needs of the seller, marketing on the needs of the buyer

• Selling is preoccupied with the seller’s need to convert his product into cash, marketing with the whole idea of satisfying the needs of the customer by means of the product


• Customer Needs : Types of Need :1. Stated Needs2. Real Needs3. Unstated Needs4. Delight Needs5. Secret Needs

MARKETING : CORE CONCEPTS• Responsive Marketing : Find a stated need and fulfill it• Creative Marketing : Discovers and produces solutions that

the customer did not as for but to which they respond enthusiastically

• Integrated Marketing : When all the company’s departments work together to satisfy the customer’s interest, the result is integrated marketing

• External marketing : Marketing directed to people outside the company

• Internal marketing : Successful hiring / training and motivating employees who want to serve the customers well


• Societal Marketing Concept : The organisation’s task is to determine the needs, wants and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well being

• Calls for marketer to build social and ethical considerations into the marketing practices

• Green marketing : Marketing of products that are presumed to be environmentally safe

MARKETING : CORE CONCEPTS• Social marketing : Systematic application of marketing, along

with other concepts and techniques, to achieve specific behavioral goals for a social good.

• Social marketing can be applied to promote merit goods, or to make a society avoid demerit goods and thus to promote society's well being as a whole

• The primary aim of social marketing is "social good", while in "commercial marketing" the aim is primarily "financial”

• Social marketing is being described as having "two parents"—a "social parent" = social sciences and social policy, and a "marketing parent" = commercial and public sector marketing approaches

Functions of CMOs

• Strengthening the brands• Measuring marketing effectiveness• Driving new product development based on

customer needs• Gathering meaningful customer insights• Utilizing new marketing technology

Improving CMO Success

• Make the mission and responsibilities clear• Fit the role to the marketing culture and structure• Ensure the CMO is compatible with the CEO• Remember that show people don’t succeed• Match the personality with the CMO type• Make line managers marketing heroes• Infiltrate the line organization• Require right-brain and left-brain skills

Core Marketing Concepts

• Target markets, positioning, segmentation

• Offerings and brands

• Value and satisfaction

• Marketing channels• Supply chain• Competition• Marketing

environment

New Consumer Capabilities• A substantial increase in buying power• A greater variety of available goods and services• A great amount of information about practically

anything• Greater ease in interacting and placing and

receiving orders• An ability to compare notes on products and

services• An amplified voice to influence public opinion

Holistic Marketing Dimensions

The Four P’s

Performance Marketing

• Financial Accountability• Social Responsibility Marketing

Social Initiatives• Corporate social

marketing• Cause marketing• Corporate philanthropy• Corporate community

involvement• Socially responsible

business practices

Marketing Management Tasks

• Develop market strategies and plans• Capture marketing insights• Connect with customers• Build strong brands• Shape market offerings• Deliver value• Communicate value• Create long-term growth

1 intro marketing

Marketing

Transcript of 1 intro marketing